According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage loans surged last week. The Market Composite Index, which measures total loan application volume, was up 7.5 percent over the previous week due to a 9.4 percent spike in the Refinance Index. The Purchase Index gained 0.1 percent from the previous week. Refinance activity represented 80.5 percent of all loan applications largely because of another dip in average mortgage rates. The average contract interest rate on 30-year fixed-rate mortgages fell to 4.05 percent from 4.09 percent the previous week. The drop brought rates to their lowest level in the history of the survey. The average mortgage rate for 30-year jumbo loans also hit a record low, dropping to 4.29 percent from 4.33 percent the week before. More here.